Bull market might continue this week: Experts
Bull market might continue this week: Experts
Viet Nam's stock market recorded a week-long rally with the benchmark breaking through 1,200 points and continuously hitting new highs. Experts from securities firms expected that last week's movements described the market's strength and it might still be in an upward trend.
The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) started edging higher since last Monday. The rally extended through the week, supporting the index cross the 1,200 point-level again on Thursday.
At the last trading session, the index closed the week at 1,224.45 points. For the week, it rose nearly 5.4 per cent.
With positive sentiment, local investors kept pouring cash into the market and foreign investors returned to net buying after a long time of selling off.
Analysts from Viet Dragon Securities Corporation (VDS) said that in the last session, the market received a main drive from large-cap stocks as many of them still posted big gains.
In addition, some stocks haven't joined the trend and still have been in an accumulative process.
The key reason supporting the stocks' gains is that some listed companies may release positive results from production activities. Hence, investors should notice the first-quarter financial reports to navigate investments in a more efficient way, VDS added.
According to MB Securities JSC (MBS), thanks to positive support from the global market, the local market continued its rally in the last session, rising for the fifth session.
Despite corrections in early sessions, the market quickly reversed course on strong cash inflows which also showed signs of the market's strength.
On the technical front, after surging, the VN-Index's rally was temporarily slowed and might face resistance territory of 1,230 points.
On HoSE, the liquidity in the last session remained at a high level with a value of over VND14.3 trillion. Foreign investors continued to return to the market as they net bought a value of VND715.39 billion on the southern bourse.
However, the securities firm recommended that investors also need to prepare for the corrective scenario as the index might fall to test the new support territory of 1,200 points in the near future.
Meanwhile, Saigon - Hanoi Securities JSC (SHS) said that after four weeks of challenging the resistance territory of 1,200 points, the VN-Index broke over this importance level, hitting the highest point since April 2018.
The movements supported investors' sentiment and huge demands helped the benchmark record new highs.
Based on Elliott Wave theory, SHS expected that the market is still in the fifth wave, which is also called the impulse wave, with a target of hovering around 1,250 points.
The VN-Index is expected to reach the above level in the first half of April, so there is still room for gaining points in about two weeks, SHS said.
On the Ha Noi Stock Exchange, the HNX-Index finished last week at 294.89 points, up 0.85 per cent. For the week, the index climbed nearly 10.4 per cent.
Data collected from SHS showed that bank stocks posted the biggest gain of 7.2 per cent in market capitalisation, boosting the market to break the record level. Some outstanding stocks from the sector were Vietcombank (VCB), Techcombank (TCB), Vietinbank (CTG), VPBank (VPB), JSC Bank For Investment and Development of Viet Nam (BID), MBBank (MBB) and Saigon Hanoi Commercial Joint Stock Bank (SHB), up 3.1 - 38.5 per cent.
Followed by finance, consumer goods and materials stocks with an increase of 6 per cent, 5.1 per cent and 4.9 per cent in market capitalisation, respectively.
Other sectors also reported positive results such as pharmaceutical and healthcare, oil and gas, utilities, industry, services and information technology stocks rose 2 - 4.3 per cent.
